Foreign concern over Egat ban
Foreign investors have expressed concern over regulations prohibiting subsidiaries of the Electricity Generating Authority of Thailand (Egat) from bidding for new contracts under Thailand's independent power producer (IPP) scheme.
Electricity Generating Plc (EGCOMP)'s senior executive vice president and finance director, Sakda Sreesangkhom, said the issue was the most frequently asked question during a recent road show in Singapore hosted by the Stock Exchange of Thailand.The company is confident that if the Electricity Regulatory Board allows Egat's subsidiaries to join in the IPP programme, Thai consumers will receive cheaper electricity because the subsidiaries have the expertise to create economies of scale. Egat holds a 24-per-cent stake in EGCOMP and 45 per cent in Ratchaburi Electricity Generating Holding Plc. The board's restriction aims to prevent the state electricity utility from monopolising the country's electricity sector. Sakda said that during the road show, EGCOMP received a warm welcome from institutional investors including Singapore's Government Investment Corporation, JP Morgan and Aberdeen.
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